Germany to introduce CO2-based car taxes by 2010
Mon 16 June 2008
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The German Government has anounced plans to introduce a CO2-based car tax system from 2010. The new system will take into account the CO2 emissions of a passenger car, replacing the annual road tax regime which has been based on engine size.
Implementation of the new system has been set for a year later than originally envisaged due to the delays caused by political disputes within the coalition. However, this allows national and state governments time to agree the detail of the new system. The taxes were previously paid to state governments but under the new scheme will be collected centrally. The national government has stated it will reimburse the various state administrations for any lost revenue.
The German car industry, including both BMW and Volkswagen, has welcomed the move. A BMW spokesperson said, "The agreement is helpful for three key reasons: the CO2 tax is linear, it differentiates between diesel and petrol vehicles and particularly fuel-efficient vehicles are relieved from paying the tax below a certain level of CO2 emissions."
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